A home away from home

Michael Steed muses on a common client question in respect of travel and subsistence costs

‘Yes, but staying in a flat’s cheaper – surely I can get a deduction for this?’

Introduction

Imagine the following scenario: Sunil is a contractor and he has won a nine month contract for professional services in a city that’s 250 miles away from where he lives. He decides immediately that he cannot commute this on a daily basis, so he considers his options. He has asked you about renting a flat on the basis that this is more convenient and less expensive than a hotel or B&B option.

Let’s analyse this scenario under two different assumptions: